Tenancy Periodic Agreement NSW: Everything You Need to Know
Are you looking for a flexible rental agreement? A tenancy periodic agreement might be the solution for you. In New South Wales (NSW), a periodic tenancy agreement allows tenants and landlords to renew their lease on a rolling basis without being tied down by a fixed term.
In this article, we’ll explore the ins and outs of a tenancy periodic agreement in NSW, including what it is, how it works, and what you need to know before signing one.
What is a Tenancy Periodic Agreement?
A tenancy periodic agreement is a type of rental agreement that allows a tenant to continue renting a property after the initial fixed-term lease has expired. Instead of renewing the lease for another fixed term, the agreement rolls over on a periodic basis. The tenant pays rent at a regular interval, such as weekly or monthly, until they or the landlord decide to end the tenancy.
How Does a Tenancy Periodic Agreement Work in NSW?
In NSW, a periodic tenancy agreement is governed by the Residential Tenancies Act 2010. When the initial fixed-term lease expires, the tenant and landlord can agree to let the lease become periodic. The agreement then rolls over automatically, with the rent and other terms remaining the same unless the landlord or tenant gives notice to change them.
Under a periodic tenancy agreement, the tenant has the right to remain in the property for as long as they like, provided they continue to pay rent and comply with their obligations as set out in the agreement. Conversely, the landlord can request possession of the property by giving the tenant notice to vacate, usually 90 days prior to the end of a rental period.
Pros and Cons of a Tenancy Periodic Agreement
A tenancy periodic agreement has several advantages and disadvantages for both tenants and landlords.
For tenants, a periodic tenancy agreement provides flexibility and less financial commitment than a fixed-term lease. They have the freedom to move out with only a short notice period and can stay in the property for as long as they want.
For landlords, a periodic tenancy agreement offers greater flexibility than a fixed-term lease. The landlord has the option to end the tenancy with a shorter notice period (usually 90 days) and can adjust the rent or other terms of the agreement more easily.
However, there are also downsides to periodic tenancy agreements. For tenants, the rent may increase on short notice, and the landlord may choose to end the tenancy with little warning. For landlords, a periodic tenancy agreement presents a higher risk of vacancy than a fixed-term lease, as tenants are not committed to staying for a set period.
Things to Consider Before Signing a Tenancy Periodic Agreement
Before signing a tenancy periodic agreement, tenants and landlords should consider the following:
– The length of notice required to end the agreement: In NSW, the landlord must give notice to end the tenancy. For periodic agreements, this is usually 90 days. Tenants should ensure they are comfortable with the length of notice required in case they need to move out.
– The rent payment interval: A periodic agreement allows tenants to pay rent on a weekly or monthly basis. Tenants should consider which interval suits their budget and cash flow.
– The length of the notice required to increase the rent: The landlord has the right to increase the rent with notice. Tenants should ensure they are comfortable with the notice period required before the rent increases.
– Repairs and maintenance: The tenancy agreement sets out the landlord’s and tenant’s maintenance obligations. Tenants should ensure they are happy with the maintenance requirements before signing the agreement.
Conclusion
A tenancy periodic agreement in NSW is a flexible option for landlords and tenants who do not want to be tied down by a fixed-term lease. It offers greater flexibility and convenience, but also comes with risks and responsibilities. Before entering into a periodic tenancy agreement, both parties should ensure they have thoroughly read and understood the agreement and its terms.